Country-of-origin research has provided inconsistent findings about how the country of manufacture (COM) affects brand image evaluations. The authors examine how the COM, vertical line extension (VLE) type, and brand concept interactively affect brand image evaluations after brands introduce products in their existing product categories. The authors draw on schema congruity theory to develop a conceptual framework and confirm it using experimental methods. Results from a sample of U.S. consumers demonstrate that the COM's influence on brand image should be considered in conjunction with the type of VLE strategy and the intended conceptual meaning of a brand. Manufacturing in a country with a favorable image does not always improve brand image evaluations. Functional brands can improve their image with an upward VLE regardless of the COM; however, if these brands pursue a downward VLE, the COM has little to no effect. For prestige brands, downward VLEs result in lower postextension brand image regardless of the COM. However, a favorable COM appears to soften the negative effect of downward VLE on postextension brand image evaluations.
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